Polkadot price analysis: DOT recovery on thin ice as pair faulters at $16.00
It is being reported today (18/08/2018) that the market for the new Polkadot protocol is stagnant. There is no real movement in the price action, as the price of DOT has not deviated from the $16.00 support level in the past five days. As I wrote in my previous blog on Monday, the price of DOT reached a high of $27.00 on the 1st August before falling back to $16.00.
The latest episode of the highly popular cryptocurrency podcast, Crypto Daily, will feature an in-depth discussion of Polkadot, a platform for the development of decentralised applications on the Ethereum blockchain. The episode will be available for download on Thursday, 29th May 2018, and will be hosted by Pindar Wong, CTO of RPX Blockchain, on his podcast ‘Crypto Daily.
Summary of the situation
Polkadot’s price analysis remains slow because the price is in a range
DOT/USD rebounds from critical $14.00 support
Recovery rally has led to a rebound in the pair, but doubts remain
Price graph Polkadot by TradingView
The advance of the DOT/USD is slowing as the pair is about to enter a new cycle of stagnation. There is no negative news to accelerate the decline. So the decline will be gradual and the price could reach $13 again.
Technical indicators show no sign of an immediate resumption of the uptrend, after the pair fell from the $21.50 support level. The cascading effect from the $21.50 support zone will only accelerate and could take the DOT/USD to the $11.00 support zone. The bulls have pushed back from the $13.00 support zone, but volume data is weak, meaning the rally is based on thin liquidity.
A horizontal support line has been formed parallel to the falling price channel. Thus, the recent support area at $13.00 is considered a new support area. In addition, there is additional support in the $10.00 area, where long-term investors may be concerned. The RSI is at 42, indicating a neutral zone with a bearish bias.
Polka Dot Price Analysis Output: $16 recovery may soon disappear
Traders should remain cautious with the current price action. In the current climate, there are subtle signs of a further slowdown. Polkadot’s price analysis shows that the DOT/USD pair follows the general altcoins in terms of price movement. So after the sharp drop to the lower support, the recovery phase begins.
The Polka Dot remains vulnerable to further downward movement if the pair tests the lower support areas. Like other altcoins, the pair is responding to negative news about crypto-currencies, including Chinese measures to restrict crypto-currency mining.
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